Sakata Seed America Inc. is set to receive state tax breaks in exchange for building a $27.3 million expansion near Woodland.
The committee that oversees the Governor’s Office of Business and Economic Development’s California Competes program approved a tax credit agreement with the Morgan Hill-based seed research and production company at its meeting Thursday.
Under the agreement, Sakata will receive $2.5 million in tax credits over five years in exchange for the company making $27.3 million in investments and adding 55 full-time jobs.
The agreement says the investments will be in the form of tenant improvements, manufacturing equipment, furniture and fixtures, research and development equipment and facility investments as part of an expansion in Woodland. The agreement did not provide any further details about the expansion project.
Representatives of Sakata Seed America were not immediately available to comment.
Sakata opened its $18.5 million Woodland Innovation Center in 2018. The research station — consisting of a 25,000-square-foot warehouse, greenhouses, research and development shop, equipment maintenance shop and an office building — is built on 219 acres.
When it opened, the company said the space had room for expansion.
The environmental review document for the initial construction of the Woodland research station shows the company was planning on three future phases of expansion, which could ultimately include a four-bed dormitory for interns and researchers, further additions to the mill and warehouse that could expand the building to nearly 100,000 square feet, additional offices, greenhouses and a pathology lab.
Sakata Seed America produces and sells vegetable and flower seeds for North America. It is a subsidiary of the Japan-based Sakata Seed Corp. It also has research stations in Mount Vernon, Washington; Salinas; Fort Myers, Florida; and Sinaloa, Mexico.
